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The Kenya Electricity Transmission Company (KETRACO) is under scrutiny regarding the transparency of its new power transmission projects, raising concerns among analysts and stakeholders. Calls for clarity on timelines, costs, and safeguards are increasing amidst the government's push for private sector involvement in infrastructure development.
The Kenya Electricity Transmission Company (KETRACO) is facing renewed questions over the transparency of its new power transmission projects. This development follows the cancellation of a significant KSh 94.9 billion deal with India's Adani Group, which had previously sparked public debate and regulatory review. Stakeholders are now urging KETRACO and the government to provide greater clarity on project timelines, associated costs, and the safeguards in place to ensure fair and open tendering processes.
Kenya's power sector has historically grappled with issues of transparency, particularly concerning power purchase agreements and the disclosure of electricity pricing. KETRACO, established in 2008, is mandated with the bulk movement of electrical energy from generation sites to substations, operating high-voltage transmission lines (above 132 kilovolts) to minimize losses over long distances. The company's transmission projects are categorised into system strengthening, power evacuation, regional interconnectors, and electricity access initiatives.
The government, through KETRACO, aims to expand the national grid significantly. KETRACO's Transmission Master Plan 2023-2042 outlines the need for 5,672 km of new high-voltage lines, requiring an estimated investment of KSh 650 billion (USD 5 billion). Traditionally, these projects have been financed by the exchequer and sovereign borrowing from Development Financial Institutions (DFIs). However, due to increasing public debt and competing social needs, the government is now actively seeking private sector involvement through Public-Private Partnerships (PPPs) to bridge the financing gap.
The Public-Private Partnership (PPP) Act 2021 provides a framework for private sector participation in infrastructure projects, allowing the government to leverage private expertise and innovation. However, civil society organisations, such as the Commission for Human Rights and Justice (CHRJ), have previously petitioned the High Court to compel KETRACO and the Energy and Petroleum Regulatory Authority (EPRA) to disclose information and conduct extensive public participation for PPP agreements, citing constitutional requirements and the Access to Information Act. This highlights the legal and policy emphasis on transparency and public engagement in major infrastructure deals.
Lack of transparency in tendering processes for new power projects could lead to inflated costs, substandard work, and potential corruption, ultimately burdening taxpayers and hindering reliable electricity supply. Delays in project execution, as highlighted by past parliamentary inquiries, can impede national development goals, including supporting agro-industrial zones, irrigation schemes, and post-harvest storage. Furthermore, unresolved issues such as landowner compensation can lead to legal challenges and public distrust, slowing down critical infrastructure development.
The specific details of the new power projects currently under scrutiny, including their exact scope, estimated costs, and proposed timelines, remain largely undisclosed. The mechanisms for ensuring public participation in these PPP agreements, beyond regulatory requirements, are also unclear. The status of ongoing negotiations with private entities for these projects has not been fully communicated.
The ongoing calls for transparency in KETRACO's tendering processes will likely intensify, particularly as the government seeks to implement more PPPs in the energy sector. The outcomes of any legal challenges regarding public participation and information disclosure will set precedents for future infrastructure projects. Stakeholders will be closely monitoring KETRACO's adherence to procurement regulations and its responsiveness to public and parliamentary demands for accountability.
